FirstBank’s subsidiary FB Financial has completed its merger with Knoxville, Tennessee-based Clayton Bank and Trust, and Tullahoma-headquartered American City Bank.

The acquisition enables FirstBank to strengthen its Tennessee presence in key metropolitan areas as well as in community markets.

FirstBank, which is considered as the third largest Tennessee-headquartered bank, now has total assets of nearly $4.5bn, with 63 full-service bank branches across Tennessee, North Alabama and North Georgia.

As per the merger deal, Clayton HC has received 1,521,200 common stock shares and a cash consideration of $184.2m.

Until the systems conversion is completed, Clayton Bank and American City Bank branches will continue to operate under their existing names as divisions of FirstBank. The systems conversion is expected to take place by the end of this year.

FirstBank president and CEO Christopher T. Holmes said: “This is an outstanding combination of like-minded banks that will benefit everyone involved – our customers, our associates and our shareholders, and it will strengthen FirstBank’s reputation as a premier bank in the state.

“I expect the process of integrating these banks will be smooth because of our common relationship-based customer service cultures. Additionally, customers should not notice changes in relationship or service as the name of the bank changes.”

While Stephens served as financial advisor FB Financial on the transaction, Alston & Bird acted as its legal advisor. 

In July, FB Financial announced that it had received all regulatory approvals for the merger.

Before the merger, Clayton Bank had assets of about $885m, with 13 branches across its markets in Knoxville, Jackson, Oakland, Covington, Henderson, Lexington, Friendship and Cookeville, Tennessee.

Operating five branches, American City Bank’s assets stood at approximately $314m.


Image: Clayton HC has received a cash consideration of $184.2m for the deal. Photo: courtesy of stockimages/Freedigitalphotos.net.